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| Thursday, July 29, 2010 |
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| [Saturday, July 08, 2006] |
| I have the opportunity to bid on a cleaning contract in the state of Florida. My existing company is here in Massachusetts. The facility is a "huge" clubhouse for a 5,500 unit gated community. My initial questions are; do you know what the hourly pay rate for janitors in the state of Fl. is, and what would you expect to pay a working manager to oversee this operation? The clubhouse consists of several types of buildings (dance hall, library, internet cafe, arts and crafts room, and fitness center).
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| Production Rates - Susan M cNamara |
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My guess is that the amount would be about $65K to $75K as a base, with up to 25% to 35% of that amount in a performance-based bonus. This is for a person who can build and manage the business. The amount for a site manager would probably be about $35K to $45K, also with a performance-based bonus. The compensation for the general manager will have to be enough to attract and retain a qualified person.
Each region of the USA has its own compensation scale that is based the average wage and cost of living for that area. The local Chamber of Commerce or the U.S . Department of Labor would be able to give you specific wage rate information for the area you are asking about. The answer to your specific question is dependent on whether or not you want a manager to handle this one account, or whether you are willing to invest in a person who can initially handle the account, but while doing so, can seek and manage new accounts as they are acquired. At some point, the manager will move on to manage all of the accounts, replacing himself or herself with a manager for the initial account.
Opportunities for a new account can be very seductive and one can rationalize their value. I would approach this opportunity with a very careful analysis since it does involve an account far away from your base of operations.
Analysis would include:
(1) Understanding the requirements for doing business in that state,
(2) Understanding the WC impact, if any,
(3) Knowing the prevailing wage and salary rates,
(4) Deciding whether this will be your sole account in that state or if you will plan to actively market in the area for other accounts,
(5) The predicted stability of the new account.
(6) Have a realistic expectation about how the acquisition of this account will affect your company in terms of calculated gains compared to the effort and funds expended.
There are many factors involved and they all need to be considered. Sometimes the danger lies in wanting something so much that the analysis process is done in such a way that certain factors are ignored or discounted. The analysis has to be done in a disinterested manner. Having said that, there are many good opportunities and you should not be timid about taking prudent risks as long as you understand those risks.
Gary Penrod.
www.garypenrodandassociates.com
P- 843 681 6588 x11
Email: penrod3111@aol.com
Answer #2:
The U.S. Dept. of Labor has a wage survey web site www.bls.gov/home.htm. It shows the average janitorial wage in Florida to range between $8.31 and $9.02 with supervisory pay up to $14.42 an hour. It also has wage details for 19 Florida metro areas.
If you plan to service an account long distance, you must implement rigid Q.C. inspections by the supervisor, use monthly customer evaluation surveys, plan on regular or weekly phone contact with everyone involved, and train your staff to walk on water.
Gary Clipperton
www.nationalproclean.com
P-(719) 598-5112
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